03-192 Acts Net directors jailed
Friday 20 June 2003
Two former directors of Acts Net Limited (Acts Net) have been sentenced to jail today following their guilty pleas to a number of charges brought by the Australian Securities and Investments Commission (ASIC).
Mr Graeme Geoffrey Milner of Mildura, Victoria and Mr Terrence John Hunter of Perth, Western Australia, appeared in the Melbourne County Court and were each sentenced to a total of two years imprisonment, to be released after serving six months and to be of good behaviour for 18 months.
Mr Milner previously pleaded guilty to three, and Mr Hunter to two, ASIC charges of dishonestly using their positions as company directors to gain an advantage for themselves. Both men pleaded guilty to two counts of offering a prescribed interest without an approved deed.
ASIC alleged that Messrs Hunter and Milner made improper use of their positions as company officers by agreeing to the transfer of US$182,000 and US$208,000 respectively from the Acts Net bank account, an account established to hold the investors funds, to the Acts Ministry bank account and Ascension College account. ASIC also alleged that the money was then disbursed to pay personal and operating expenses of the College and Ministry.
Mr Hunter was a director and religious Minister of Acts Ministry, and the Chairman of the School Board at Ascension College. Mr Milner was the Bursar of Ascension College and on the Board of Directors, and was also a Minister with Acts Ministry.
Acts Net was placed into liquidation on 24 February 2000, following an application by ASIC to the Supreme Court of Victoria.
Background
ASIC alleged that between 1997 to September 1999, Acts Net raised in excess of $4.2 million from more than fifty investors across Australia and New Zealand, for investment overseas in schemes referred to as Debenture Trade Programs or High Yield Investment Programs.
The invitations to invest were made without there being in force an approved deed, as required by the Corporations Law. The profits promised to investors were ‘prescribed interests’ under the Corporations Law.
The schemes required the company to send the investors’ funds offshore to be invested by a third party, on the company’s behalf, in a Bank Debenture Trading Program. The third parties were the US-based companies Fenmore International Ltd and Dakota Capital Management Inc, respectively.
The schemes subsequently failed and the investors lost nearly all of their money.
The matter was prosecuted by the Commonwealth Director of Public Prosecutions.
ASIC Website: Printed 01/06/2009
